Replies to post #372046 on NorthWest Biotherapeutics Inc (NWBO)

[exwannabe]

Marzan, it is the norm for large investors who take risk buy buying in with warrants and converts to hedge via shorting. It is a matter of their risk consideration.

About a decade ago DNDN took out a large convert loan after they stuck gold. As part of the convert, they actually lent shares to the investors so they could hedge the convert by shorting the lent shares.

It is the real world.

[JerryCampbell]

All of those $0.20 nwbo warrants were issued in deals with the company. Those warrant holders should all be friendlies. Do you really believe that none of them would want to hedge and lock in some of their gain? No one would want to defer a gain for tax purposes?

The alternative is speculative shorting of nwbo. I'm not a fan of nwbo management and think the chance of success is low. Still wouldn't short it. When borrow is available, it is expensive. Most of the holders are retail rather than institutions, which means that borrow is less stable than usual, increasing risk of recall.

What evidence do you have that nwbo's short interest is somewhat irrational speculative shorting rather than 100% rational hedging of gains?

I can't prove that all the shorting is hedging, but it makes a heck of a lot more sense than the alternative.